Treasury Management

As of 31 March 2026, undrawn, fully secured borrowing facilities of £6m were available through Santander via a £20m facility that runs to January 2033.

In May 2026, a further £10m of capacity was introduced through a new ten-year term loan, also with Santander.

At present, security capacity beyond that required for existing drawn and undrawn facilities, including the new £10m facility, is estimated at £50m, presenting a potential basis for increasing or refinancing existing arrangements should business and treasury strategy reviews indicate this would be beneficial. The latest revision to the financial business plan assumes long-term average reference rates, beyond 2028, of 4.0%.

>> A change to our interest cover covenant.
During the year, funders requiring an interest cover covenant agreed to exclude capitalised major repairs from the EBITDA calculation. This recognises the value of greater flexibility in our large-scale planned works programme, most notably our ongoing EPC-related investment. The new interest cover covenant requires a minimum of 130%, compared with 110% under the previous basis.

>> Comfortably within our covenants.
Performance against both key covenants remained strong. Interest cover stood at 215% (2025: 224%), well in excess of the 130% requirement, while gearing remained low at 30% (2025: 30%), comfortably within the 50% limit. The calculation basis of these metrics reflects funders' requirements and differs from the values outlined under the RSH value for money performance metrics.